Australia’s construction industry enjoyed an improved performance in July, with the pipeline of new projects currently sitting above the five year average, a healthy quarterly trend of new projects moving into construction, and the estimated construction value of active projects up 19% year on year according to the latest CoreLogic Cordell Construction Monthly, released today.
Australia’s construction pipeline has an improved outlook, with July’s number (1,963) representing the largest number of new construction projects since November 2017, with a total estimated value of $18.4bn.
Despite the improved monthly performance, new project announcements were however 12% lower year on year. Analysing by construction project type identified that civil engineering made up nearly half the value of new projects (48%), despite the lowest median project value across all core industry categories (just $500,000) and only 25% of the number of projects. Apartment projects accounted for the largest share of new pipeline projects by number (29%) and second largest share by value (20%), with a median project value of $1.2million.
Moving into construction results
The number of Australian construction projects entering the construction phase wasn’t so favourable, slipping 11% month-on-month in July, with industrial projects the only broad category to record a rise in July (up 20%). The quarterly trend is much healthier, with the number of projects moving into construction increasing 20% over the past three months.
From a value perspective, the month-on-month fall is less severe; the overall value of projects moving to construction was $7.7 billion in July (down 2% from June but actually 19% higher year-on-year). The Mining sector accounted for only 1% of new construction projects, but on a value basis ($2 billion total, $135million median value) these projects accounted for 26% of new construction activity.
For detailed State specific construction activity, more information can be found in the full report.